Dividend Paying Stocks Are Getting Positive Reviews from Wall Street Analysts

While the artificial intelligence (AI) boom has ignited investor enthusiasm due to its long-term growth prospects, this optimism has been somewhat dampened by rising tariff-related tensions and broader economic uncertainties.

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In this unpredictable environment, investors aiming for more stability and steady income may find it beneficial to focus on dividend-paying stocks. Studying recommendations from highly rated Wall Street analysts can help identify strong candidates for such investments.

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Here are three dividend stocks favored by top analysts, as tracked by TipRanks, a platform that ranks analysts based on their historical performance.

ConocoPhillips (COP)

The first stock on this list is ConocoPhillips, a major player in oil and gas exploration and production. In the first quarter of 2025, the company returned $2.5 billion to shareholders through $1.5 billion in share repurchases and $1 billion in dividends. Currently, it offers a quarterly dividend of $0.78 per share, amounting to an annual dividend of $3.12 and a yield of approximately 3.3%.

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RBC Capital analyst Scott Hanold recently reiterated his Buy rating on the stock with a price target of $115, as part of the firm’s third-quarter review of its Top 30 Global Ideas for 2025. Hanold expects ConocoPhillips to outperform its large-cap exploration and production peers, citing several reasons for his bullish outlook.

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He emphasized the company’s focus on delivering value to shareholders, noting its strong balance sheet and industry-leading cash distributions. Hanold pointed out that ConocoPhillips’ global and diversified asset portfolio provides financial flexibility, enabling the company to deliver consistent free cash flow across various commodity cycles.

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He also highlighted the importance of ConocoPhillips’ presence in the Permian Basin—a key U.S. oil-producing region—believing it will support free cash flow growth and offer operational flexibility. According to Hanold, the company has a low break-even oil price of under $40 per barrel, which means it can sustain its capital expenditures and dividends even in lower-price environments.

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Hanold ranks 12th out of over 9,800 analysts tracked by TipRanks, with a success rate of 71% and an average return of 31.2%.

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U.S. Bancorp (USB)

Next is U.S. Bancorp, the parent company of U.S. Bank, offering a broad range of financial services, including consumer and commercial banking and wealth management. The company pays a quarterly dividend of $0.50 per share, or $2 annually, providing investors with a dividend yield of about 4.2%.

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RBC Capital’s Gerard Cassidy, another top-rated analyst, maintained a Buy rating on U.S. Bancorp with a 12-month price target of $50. He pointed to several favorable developments, including the company’s new leadership under CEO Gunjan Kedia, who took the reins in April 2025. Kedia has reaffirmed U.S. Bancorp’s commitment to achieving more than 200 basis points of operating leverage—an effort that already showed results in Q1 with a 270-basis-point gain.

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Cassidy also praised U.S. Bancorp’s long-term performance, emphasizing its 20-year track record of delivering strong shareholder returns through a mix of share repurchases and dividend payments. He noted that the company typically returns around 80% of its annual earnings to shareholders. The analyst also cited USB’s strong underwriting practices and high-quality loan portfolio as additional positives.

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Cassidy believes that the bank has reached a turning point after underperforming in the last two years. With prior investments beginning to pay off, the bank is positioned to see revenue growth outpace expenses in the coming years.

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Ranked 24th among the more than 9,800 analysts on TipRanks, Cassidy has a success rate of 72% and an average return of 21%.

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HP Inc. (HPQ)

The third dividend stock highlighted is HP Inc., the well-known tech firm. HP recently declared a quarterly dividend of $0.2894 per share, which translates to an annual dividend of $1.1576 per share and a yield of around 4.5%.

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Despite ongoing geopolitical and economic challenges, Evercore ISI analyst Amit Daryanani maintained a Buy rating on HP with a price target of $29. Following a recent investor call with HP’s Chief Enterprise Officer Ernest Nicolas, Daryanani shared several reasons for his optimistic outlook.

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He noted that HP is progressing in its efforts to shift manufacturing of U.S.-bound products out of China. The company aims to produce 90% of these products in other countries such as Vietnam, Thailand, Indonesia, and Mexico. This multi-location manufacturing strategy is designed to reduce tariff exposure and optimize HP’s supply chain.

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Daryanani also highlighted HP’s cost-saving initiative, the “Future Ready” plan, which is expected to generate $2 billion in annualized gross savings. Part of this includes the use of AI tools internally to enhance productivity and streamline operations. Despite the fluid tariff environment, HP’s management feels better prepared to navigate the current challenges.

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Daryanani is ranked 174th among TipRanks analysts, with a 64% success rate and an average return of 15.3%.

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In summary, during times of market uncertainty and economic headwinds, dividend-paying stocks like ConocoPhillips, U.S. Bancorp, and HP offer both income and potential capital appreciation.

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These companies are backed by strong fundamentals and are favored by highly ranked Wall Street analysts, making them compelling additions for investors focused on stability and long-term value.

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